bp madrid spain holdings - Combating tax fraud, BP Holdings

Problems regarding tax frauds continue to dwell and even worsens. Efforts are now fully focused on the issue of prioritizing VAT fraud. The debate on VAT fraud has been divided into 2 main areas:1. Conventional measures to reinforce existing VAT system.2. More far reaching measures to modify the system, namely:o An option for Member States to introduce a general reverse charge system;o Taxation of Intra-Community transactionsThe Commission created a new expert group with Member States, the
"Anti Tax Fraud Strategy (ATFS)" expert group, with a view to conduct the technical discussions on the conventional measures. The Vat system is not enough to combat a VAT fraud within a single market. There is need to improve a greater system in order to have a harmony and increase in cooperation between the state and the people. The commission proposes to improve measures to strengthen the existing system.Insinuations of tax evasion and target incompetence for income measurement are
significant. Systematic misinterpretations of income source present misleading view of income distribution and redistribution profiles.Proposals have been submitted to fight fraud. More far reaching methods such as legislative proposals were released February 2008. In this Communication the Commission analyses the taxation of Intra-Community transactions and the introduction of the option of a general